At the profit-maximizing level of output for a perfectly competitive firm, price equals marginal cost. Which of the following is also true?
A) Total revenue equals total cost.
B) Marginal profit equals marginal cost.
C) Average revenue equals average total cost.
D) The difference between total revenue and total cost is the greatest.
D
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As the price of a product rises, the quantity supplied decreases
Indicate whether the statement is true or false
Economic variables that generally turn down before a recession begins and turn back up before the recovery starts are called:
A) leading indicators. B) coincident indicators. C) lagging indicators. D) none of the above.
The belief that the velocity of money is not constant but highly predictable is associated with the:
a. Keynesian school. b. monetarist school. c. rational expectations school. d. supply-side school. e. classical school.
Exhibit 5-9 Supply and Demand Curves for Good X
?
As shown in Exhibit 5-9, the price elasticity of demand for good X between points E and B is:
A. 3/7 = 0.43. B. 7/3 = 2.33. C. 1/2 = 0.50. D. 1.